10th Sector Report Energy (2025): Competition and Efficiency for a Sustainable Energy System
Sector Report of the Monopolies Commission
Bonn, 4 November 2025 – The Monopolies Commission calls for stronger efforts to modernise Germany’s energy systems. “Only by addressing the root causes of high energy prices can we achieve lasting progress. Symptom relief alone is not enough,” said Tomaso Duso, Chair of the Monopolies Commission. The Monopolies Commission today presented its 10th Energy Sector Report to the Federal Ministry of Economics. The report offers recommendations for future-proof energy systems covering electricity, district heating, gas and charging infrastructure for electric mobility. According to the Commission, greater efficiency and stronger competition are crucial for a successful energy transition. The Monopolies Commission is an independent advisory body that counsels the Federal Government on matters of competition policy.
ELECTRICITY
For electricity networks, the Monopolies Commission advocates the introduction of dynamic grid charges and consistent digitalisation. “At present, the system rewards behaviour that pushes networks to their limits. With dynamic grid charges, generation and consumption can be guided by price signals – effectively creating a happy hour for electricity use,” explained Duso. Electricity grids are increasingly operating at capacity. The growing share of renewable generation and rising consumption are leading to severe fluctuations – overloads and bottlenecks vary by time of day and region. Current grid charges offer few incentives for using existing capacities smartly. As a result, inexpensive wind and solar power in the North is curtailed, while costly gas and coal plants in the South are ramped up. Dynamic grid charges would allow generation and consumption to adapt more flexibly to the grid both regionally and over time. However, this requires consistent digitalisation of the grid infrastructure. “Only by decisively advancing both – the digitalisation of the grids and the reform of grid charges – can the energy transition be made efficient,” said Duso.
Possible alternatives to dynamic grid charges include electricity price zones and nodal pricing systems, though these are considered politically difficult to implement.
CHARGING INFRASTRUCTURE
Electric mobility is a key component of the energy transition. Lack of competition in the expansion of the charging infrastructure and non-transparent charging prices mean that many drivers end up paying too much. The Monopolies Commission therefore welcomes progress toward the creation of a price transparency body for ad hoc charging and recommends promoting competition through tenders for municipal spaces.
Particularly critical is the expansion of charging stations for electric trucks along motorways. “There must not be a charging monopoly for Tank & Rast GmbH along the motorways,” warned Duso. Background: around two-thirds of the planned motorway charging parks have been awarded directly to this company without a tendering process.
DISTRICT HEATING
The Federal Government aims to supply 30 percent of households with district heating by 2045 and fully decarbonise the sector. “This will only succeed if district heating remains affordable. Currently, local monopolists can push up prices for consumers,” Duso said. As gas and oil heating become less competitive, market pressure on district heating providers is declining. The Monopolies Commission therefore recommends establishing a mandatory transparency platform, introducing a low-bureaucracy benchmarking system to cap prices, and creating access rules for larger heating networks to foster competition both in and around district heating systems. Only in this way can district heating become a key pillar of the energy transition.
GAS
The gas network is also facing structural change: the use of gas as an energy source is to be completely phased out by 2045 at the latest. But what will happen to the gas networks once they are no longer needed? Without early political action, high network costs threaten to fall on the remaining customers. It is currently unclear who will finance the decommissioning or dismantling of the gas networks. “We need targeted decommissioning of gas networks and binding plans from network operators to give all parties planning certainty. They should already be obliged to do so today,” said Tomaso Duso. This would be the most efficient solution.
Looking at the energy system as a whole, Duso emphasised: “The energy transition can only succeed if people are brought along. Our recommendations outline a clear roadmap for a future-proof energy system in Germany. Competition and efficiency can address the current problems.”
Click here to download:
Sector Report Energy 2025 - full version (in German)
Policy Brief on EU Competition Law: More speed, more impact!
Policy Brief | Edition 14 | 9 Oktober 2025
The Monopolies Commission is pleased to present its 14th Policy Brief, which focuses on the reform of EU competition law procedures (Regulation 1/2003) and the merger control guidelines.
In this brief, the Monopolies Commission recommends targeted adjustments to EU competition law, particularly concerning cartel and abuse proceedings as well as merger control. Key recommendations include:
- The European Commission's proceedings for infringements of competition law should be shortened and remedies made more effective. Moreover, Member States should retain the ability to apply stricter national rules on abuses of dominance.
- The European Commission should make greater use of dynamic theories of harm and expand its merger guidelines to include an analytical framework for assessing digital ecosystems.
The Policy Brief is now available for download: Policy Brief on EU Competition Law
Statement on the European Commission's Envisaged Digital Networks Act
Bonn, 15 July 2025
Press Statement of Tomaso Duso on the European Commission's envisaged Digital Networks Act
„The envisaged Digital Networks Act presents an important opportunity to modernise Europe’s digital infrastructure and regulatory framework – but not at the expense of effective competition.
A pro-competitive, market-driven telecoms sector remains the best way to promote investment, innovation, and consumer welfare. Calls for market consolidation within national markets and mandatory payments from content providers to telecoms operators lack justification and risk distorting well-functioning internet interconnection markets.
We urge the European Commission to preserve the principles of the existing competition-oriented model. Regulatory reform must be based on empirical evidence, remain proportionate, and respect the differences across national markets.
Europe should focus on completing the digital single market with competition as guiding principle. Our recommendations aim to support a future-proof regulatory framework that delivers better outcomes for consumers and businesses alike.“
Tomaso Duso
Chairman of the Monopolies Commission
Full Statement of the German Monopolies Commission on the Digital Networks Act
10th Sector Report Railways (2025): Special Rail Fund: Setting the right Course now
Sector Report on German railway markets pursuant to Sec. 78 of the Railway Regulation Act, Bonn, June 13, 2025
In its 10th Sector Report Railways, the Monopolies Commission warns against squandering a historic opportunity: The planned special infrastructure fund to modernise the German rail network must not be allowed to become bogged down in old structures, but must be used as a lever for a genuine new start.
‘Money alone is not enough. We must now seize the opportunity to implement a real change of course at the railways,’ says Prof Tomaso Duso, Chairman of the Monopolies Commission. ‘Fundamental, structural changes are needed to ensure that the special fund reaches the rail network in a cost-efficient manner and do not fizzle out in non-transparent financial flows.’
The Monopolies Commission therefore recommends:
- Earmarked funds for modernisation and digitalisation: The federal government should use the special fund for the railways exclusively for future-oriented measures. In addition to modernising the rail network, it should particularly promote the digitalisation of processes and infrastructure. This is because greater efficiency in processes will reduce track access charges for all railway companies and thus ticket prices for customers.
- Transparency and expert control: A control and monitoring centre, with the participation of experts from the sector, should control the flow of funds. It will check whether the funds are being used cost-effectively and whether clearly defined federal objectives are being achieved. This ensures that the investments create the greatest possible benefit for the common good.
- Structural unbundling: The Monopolies Commission welcomes the fact that the new federal government wants to further unbundle DB InfraGO AG and reorganise the Supervisory Board and Management Board, but above all provide them with more specialist expertise. In the long term, the recommendation remains to completely separate the ownership of the railway network and operations. Until then, the minimum requirement is that all responsibilities relating to the railway infrastructure are transferred to DB InfraGO AG. In addition, the contracts between DB AG and DB InfraGO AG, which regulate the transfer of profits and control, should be terminated.
According to the Monopolies Commission, there is a risk that public funds will not reach the rail network as intended, but will indirectly benefit other areas of the DB Group through cross-subsidisation. The financial flows between DB AG and its subsidiary InfraGO AG are considered to lack transparency. The DB Group's dual role is problematic: on the one hand, it operates the rail network via DB InfraGO AG and, on the other, it uses the rail network for its own transport companies. This structure makes fair competitive conditions more difficult.
In addition to this structural disadvantage, there is another competitive disadvantage for other providers: the rapidly rising track access charges. Prior to the decision on the special infrastructure fund, the German government had channelled additional funds to DB InfraGO AG via an increase in equity in order to push ahead with the renovation of the rail network. The underlying issue was that the debt brake barred the financing of investments through construction subsidies. However, this step and the high interest rates on the equity capital have caused track access charges to skyrocket by up to around 30 per cent in the last five years, depending on the segment. In addition, it is not yet clear how high the charges will be in 2026. This makes it even more difficult for rail competitors to survive in the market.
The Monopolies Commission therefore recommends a temporary reduction in the return on equity at DB InfraGO AG in order to slow down track access charges. In addition, the federal government should tighten incentives in order to achieve higher quality and punctuality through the railway infrastructure.
‘Only if the special fund and the reduction in track access charges are designed in a competition-oriented way for the railways will passengers and freight transport benefit from lower prices, more innovation and better quality,’ emphasises Prof. Tomaso Duso.
The following documents are now available for download:
Sector Report in full text (in German language only)
